- Associated Press - Tuesday, March 1, 2016

SACRAMENTO, Calif. (AP) - Gov. Jerry Brown is giving his approval to a new health care tax intended to prevent a $1.1 billion hole in California’s health care program for the poor.

The governor signed legislation Tuesday after months of negotiations on how to restructure the state’s tax on health insurers. The change was made to appease federal regulators, who still need to approve the plan to prevent the budget hole.

Brown’s office says the legislation results in a net tax cut.

The Democratic governor called a special session last year to work on health care financing.

The tax plan includes hundreds of millions of dollars in perks in exchange for votes that were needed to reach a two-thirds supermajority.

It also sends more than $300 million to services for people with developmental disabilities.



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